Lease Accounting Changes: FAQ

Your lease queries, answered

New Lease Accounting Standards

What are the new lease accounting standards?

They are FASB ASC 842 and IFRS 16. In 2016 the FASB and IASB released ASC Topic 842 and IFRS 16. Simply put, these rules require all leases to be recorded as liabilities on the balance sheets. Click here to read our detailed summary of the new lease accounting standards.

What challenges are companies facing?

The challenges include gathering lease information, creating a central repository for all lease data, and determining what contracts contain embedded leases – just to name a few. Download this free ebook to transition to the new lease accounting standards.

How will our current policies be affected by the lease accounting changes?

What departments are involved in the new lease accounting compliance process?

This is going to affect your accounting, legal, purchasing, real estate, IT, financial reporting, FP&A, and treasury departments. Here is a guide on how to comply with the new lease accounting standards.

Who is affected by the lease accounting changes?

The new standards apply to public and private companies that have to issue GAAP financial statements. They do not apply to private companies that don’t issue GAAP financial statements. So mom-and-pop businesses will not be affected by the new lease accounting regulations.